Heath Care Authority releases distressed hospital grant application

June 13, 2022

The state operating budget (ESSB 5693) passed during the last legislative session included $8 million in funding for hospitals in financial distress. The Washington State Health Care Authority (HCA)  is opening the application period for the distressed hospital grants authorized by the legislature.  HCA will have two grant application periods with $4 million each period. The first round of applications will be open until July 31, 2022, and hospitals will be notified by August 22, 2022, with funds disbursed by August 31, 2022.

To qualify, a hospital must:

  • Be located in Washington;
  • Serve individuals enrolled in state and federal medical assistance programs;
  • Continue to maintain a Medicaid population at similar utilization levels as in calendar year 2021;
  • Be necessary for an adequate provider network for the Medicaid program;
  • Demonstrate a plan for long-term financial sustainability; and
  • Meet one of the following criteria:
    • Lack adequate cash-on-hand to remain financially solvent;
    • Have experienced financial losses during hospital fiscal year 2021; or
    • Be at risk of bankruptcy.

A first round completed application packet must consist of:

  • Distressed hospital application
  • Most recently completed hospital cost report
  • Written plan to return to financial solvency

The application is available here. Please send complete application packets to Abigail Cole (abigail.cole@hca.wa.gov). Questions can also be directed to that same email.

HCA will open the second round of funding later in the year. Those applications will be accepted October 1, 2022 to November 30, 2022. (Andrew Busz, AndrewB@wsha.org)


Contact Us

Washington State Hospital Association
999 Third Avenue
Suite 1400
Seattle, WA 98104

Map / Directions

206.281.7211 phone
206.283.6122 fax


Staff List